A board approves strategic initiatives without resource planning. What governance failure exists?

• A. Inadequate Feasibility Review
• B. Resource Misallocation
• C. Strategic Drift
• D. Lack of Due Diligence

Answer: (A)

When governance approves strategic initiatives without planning for the needed resources, the fundamental issue is an inadequate feasibility review. Feasibility review asks whether an initiative can actually be carried out with the organization’s available finances, people, systems, and time. Skipping resource planning means you haven’t tested whether the plan is realistically achievable, so you risk overruns, delays, or failure to deliver expected benefits. This gap is a governance failure because decisions aren’t backed by evidence of practical viability.

The other problems describe related risks but not the specific shortcoming here: lacking resource planning can lead to misallocation of resources, but the core failure is not validating feasibility up front; strategic drift concerns diverging from strategy over time; and lack of due diligence is a broader thoroughness issue, whereas the scenario centers on not assessing feasibility through resource planning.